New KPMG SA chief to restore its glory

NEWLY-appointed chief executive of KPMG South Africa Nhlamu Dlomu has committed herself to restore the embattled audit firm’s fundamental values of ethics and integrity in a bid to salvage its credibility at a time of deepening crisis.

This comes as Trevor Hoole tendered his resignation as chief executive yesterday, with chief operating officer and country risk management partner Steven Louw also stepping down following the storm created by the work the firm did for the SA Revenue Service (Sars) and the Gupta family.

Five other senior partners also decided to leave.

KPMG SA said it would also take disciplinary action seeking the dismissal of Jacques Wessels, lead partner on the audits of the non-listed Gupta entities.

KPMG received criticism regarding the “Sars Report” in which it was commissioned to investigate allegations of a rogue unit allegedly set up by former finance minister Pravin Gordhan, who was Sars commissioner at the time.

Dlomu, who was previously KPMG SA’s head for people and change, has extensive client experience, leading significant transformation in the financial services and other industry sectors here and overseas.

She has over 17 years’ experience in management consulting and management roles gained mainly in organisational development and human resources across vari- ous industry sectors.

“KPMG has a long and distinguished record of service in South Africa. Ethics and integrity are fundamental values of KPMG and these will be the guiding principles of my leadership,” Dlomu said.

“My first order of business will be to build a management team committed to these principles. That team will be announced in the coming days. The skill, experience and energy of KPMG’s new management team will ensure stability and high-quality service to our clients.”

KPMG said the findings of the investigation had reinforced the criticality of a leadership and governance model that set the right tone from the top and ensured appropriate accountability and responsibility at every level of leadership within the firm.

In addition to these leadership changes, KPMG SA said it would enhance its corporate governance processes.

In December 2014, KPMG SA was commissioned by Sars to perform an extensive document investigative review which resulted in the Report on Allegations of Irregularities and Misconduct.

Gordhan was investigated by the Directorate for Priority Crime Investigation (Hawks) over the alleged unit, but was charged with an administrative issue over the rehiring of former deputy commissioner Ivan Pillay and his pension package.

KPMG said the evidence in the documentation provided did not support the interpretation that Gordhan knew, or ought to have known, of the unit’s “rogue” nature.

KPMG said it recognised and regretted the impact its report had had and that it had had “no political motivation or intent to mislead”.

KPMG then offered to repay the R23 million fee it received for the work performed for Sars, or “to make a donation for the same amount to charity”. – ANA